ANET
Arista Networks, Inc.
Technology · Computer Hardware · United States · Stock
Score Breakdown
Scored for Aggressive Growth profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- Strong growth and a perfect profitability score anchor the composite, but the zero dividend score and a below-midpoint financial health score pull the total down to 55.1/100.
- The momentum score of 14/20 reflects consistent top-line and operating-income gains but was tempered by the temporary net income dip in 2025Q3.
- The theme assignment to AI Infrastructure and Data Centers & Cloud Infrastructure did not translate into a positive score under the model's current methodology, leaving that potential upside unrealized in the composite.
Why Not Higher
- The dividend factor contributes zero points because Arista does not pay a dividend, and the theme factor also contributed zero despite favorable macro positioning, together removing meaningful scoring headroom.
- Revenue and earnings growth, while strong at 28.6% and 23.1% respectively, did not reach the highest threshold tier, and the financial health factor scored below the midpoint, both capping the overall score.
Data Confidence
7 / 10
High — most data fields present
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from FY2024's $7,003,100,000 to FY2025's $9,005,700,000, a gain of 28.6%. Net income rose 23.1% over the same period, from FY2024's $2,852,100,000 to FY2025's $3,511,400,000, while diluted EPS increased 23.3% from FY2024's $2.23 to FY2025's $2.75.
The model rewarded Arista's broad-based double-digit expansion across revenue, earnings, and per-share results, stopping just short of a perfect score, likely reflecting that growth, while substantial, did not reach the highest threshold tier.
In FY2025, Arista posted a net margin of 39.0%, an operating margin of 42.8%, and a return on assets of 18.1%.
These metrics reflect exceptional capital efficiency and pricing power; the model awarded a perfect score, recognizing that margins and asset returns of this magnitude are rare among large-cap technology companies.
Filing evidence currently available does not support a more specific explanation for this factor.
Revenue rose sequentially in each of the last four quarters: 2025Q2 $2,204,800,000, 2025Q3 $2,308,300,000, 2025Q4 $2,487,800,000, and 2026Q1 $2,709,000,000. Operating income followed a similar upward path from 2025Q2's $986,200,000 to 2026Q1's $1,157,800,000, while net income dipped modestly in 2025Q3 to $853,000,000 before recovering to $955,800,000 in 2025Q4 and $1,022,900,000 in 2026Q1.
The model recognized consistent top-line and operating-income acceleration, but the temporary net income softness in 2025Q3 likely tempered the score below the highest tier.
Arista Networks does not currently pay a dividend; this is a genuine characteristic of the company, not a data limitation.
The model assigns a zero for this factor because no dividend income is available to reward, which is a common trait among high-growth technology companies that reinvest cash into operations and expansion.
Arista Networks is assigned to the macro themes of AI Infrastructure and Data Centers & Cloud Infrastructure.
Although the company carries two high-profile macro theme assignments, this assignment did not translate into a positive score under the model's current methodology; the theme label reflects the business's strategic positioning, not a scoring outcome.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Arista Networks delivered exceptional financial performance in FY2025, growing revenue 28.6% year-over-year to $9.0 billion and net income 23.1% to $3.5 billion, while maintaining a rare combination of a 39.0% net margin and 42.8% operating margin that earned a perfect profitability score. Sequential quarterly revenue acceleration from $2.2 billion in 2025Q2 to $2.7 billion in 2026Q1 confirms sustained business momentum. The company does not pay a dividend, consistent with its high-growth reinvestment posture. The composite model score of 55.1/100 reflects the balance between these strengths and factors that did not contribute positively, yielding a Medium risk rating and a Research Further label.
Plain English
Arista Networks is a fast-growing tech company that made about $9 billion in revenue last year with unusually high profit margins, but it pays no dividends and some scoring factors held its overall grade to a middle-of-the-road 55.1 out of 100, so it's worth digging deeper before deciding anything.
Bull Case vs. Bear Case
Bull Case
- Revenue surged 28.6% in FY2025 to $9.0 billion, with diluted EPS rising 23.3% to $2.75, demonstrating broad-based growth across the income statement.
- A 39.0% net margin and 42.8% operating margin in FY2025 reflect exceptional pricing power and capital efficiency that are rare among large-cap technology peers.
- Four consecutive quarters of rising revenue — from $2.2 billion in 2025Q2 to $2.7 billion in 2026Q1 — and steadily climbing operating income signal durable business momentum.
Bear Case
- Arista pays no dividend whatsoever, meaning investors receive no current income and are entirely dependent on business performance for returns.
- Net income dipped modestly in 2025Q3 to $853 million before recovering, introducing a note of earnings volatility that tempered the momentum score.
- The financial health factor scored below the midpoint of its range, and the available filing evidence does not clarify the specific drivers of that weakness.
What Could Change the Picture
Bullish Triggers
- Sustained acceleration in both revenue and operating income across four consecutive quarters could indicate that the business is entering a steeper growth phase tied to AI Infrastructure and Data Center demand.
- If the financial health concerns that weighed on the composite score prove transient or immaterial, the overall investment profile could look considerably stronger.
Bearish Triggers
- A recurrence or deepening of the net income softness seen in 2025Q3 could signal margin pressure or rising costs that the current profitability metrics do not yet reflect.
- The absence of any dividend combined with a below-midpoint financial health score may indicate capital allocation or balance sheet dynamics that warrant closer scrutiny.
Risk Profile
Medium RiskThe financial health factor scored below the midpoint of its range, and the available evidence does not clarify the specific drivers, leaving some uncertainty about balance sheet or liquidity dynamics. Momentum is broadly positive but the temporary net income softness in 2025Q3 is a reminder that earnings can diverge from revenue trends, adding a layer of execution risk.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.